Rechnitz then submitted change-of-ownership functions looking for licenses to run these houses. Reasonably than approving or denying them, CalMatters discovered that the state Division of Public Well being merely left his functions in “pending” standing for years. Regardless of that, his corporations have been allowed to proceed working the houses.
In 2015, he utilized for licenses for 5 Windsor nursing houses. The subsequent 12 months, the division denied the change of possession functions, however once more allowed Rechnitz’ corporations to function them.
In her scathing 2018 report, the state auditor Elaine Howle criticized the California Division of Public Well being, saying weak oversight and licensing lapses elevated danger to nursing house residents.
In an effort to handle these points, the Legislature handed a legislation in 2022 to shut a loophole that had allowed nursing house operators to run services with out first receiving licenses. The legislation required the Division of Public Well being to take a look at an applicant’s observe file over a number of years earlier than granting a license.
However earlier than that legislation took impact the next 12 months, the Division of Public Well being out of the blue granted Rechnitz and his corporations lots of the licenses it had beforehand left pending or outright denied. The group consists of nursing houses that have been the main focus of current lawsuits, resembling Nation Villa Wilshire, the Los Angeles-area facility the place a jury awarded $2.34 million after a girl allegedly fell repeatedly as a consequence of understaffing; Windsor Redding, the place the 24 sufferers died throughout a COVID outbreak; and Windsor Healthcare Middle of Oakland, the place complaints filed in Alameda County Superior Courtroom allege a girl was sexually assaulted twice and a person died after being given an excessive amount of remedy.
Ed Dudensing, a Sacramento-based lawyer who makes a speciality of elder abuse in nursing houses, is bringing the case in Alameda County Superior Courtroom alleging that neglect and poor staffing allowed a fellow affected person to rape 79-year-old Cheryl Doe on a number of events whereas she stayed at Windsor Healthcare Middle of Oakland. He’s additionally representing the household of 64-year-old Alando Williams within the lawsuit in opposition to the identical facility alleging overmedication and wrongful loss of life.
Dudensing has three different energetic circumstances in opposition to services affiliated with Rechnitz and his net of corporations alleging neglect, abuse and wrongful loss of life.
In considered one of them, 78-year-old Barbara Pendley allegedly died after struggling extreme dehydration at North Level Healthcare & Wellness Centre in Fresno.
North Level was one other facility that the state opted to grant Rechnitz and his corporations the license for beneath the 2023 settlement settlement.
Rechnitz and his corporations have filed authorized responses denying allegations in all of those circumstances, a number of of that are scheduled to go to trial within the coming 12 months.
“We’ve simply received to maintain combating,” Dudensing mentioned.
“There was a time when there was numerous scrutiny and that’s clearly well-documented,” he mentioned. “However he managed to slide by way of.”
Cassie Dunham, the earlier deputy director of the Middle for Well being Care High quality for the California Division of Public Well being, final 12 months turned chief government and president of the California Affiliation of Well being Services, the trade’s lobbying group. By a spokesperson, Dunham declined an interview for this story citing her involvement with the event of departmental coverage throughout the time that the state granted Rechnitz the licenses.
Corey Egel, a spokesman for the trade group and himself a former spokesman for the Division of Public Well being, mentioned in an announcement that the affiliation “helps robust, clear oversight however believes the system would profit from clearer timelines, extra constant software of requirements, and extra environment friendly decision of pending circumstances — in order that regulatory targets and resident care priorities can each be met.”
Affected person lawsuit at newly licensed nursing house
Among the many services that Rechnitz’corporations acquired a state license to run in 2023 was Nation Villa Wilshire, an 81-bed Los Angeles nursing house.
Based on a lawsuit in opposition to the power, 84-year-old Betsy Jentz landed there in November 2020 after she fell and fractured her ribs and hip. Previous to her accidents, the grievance said that Jentz had been in wonderful well being; her attorneys mentioned she had run 27 marathons.
However throughout the subsequent 12 months, in accordance with a plaintiff’s transient, Jentz fell no less than 10 occasions. On a few of these events, she hit her head, suffered a fractured and dislocated shoulder and a fractured pelvis. The grievance additionally described malnutrition and extreme strain ulcers. It attributed these accidents to neglect. In court docket filings, Rechnitz and his corporations have denied all accountability.
(Photograph through Lanzone Morgan, LLP)
On the night of Jan. 28, 2024, Jentz’ nice nephew Derek Skylar Aud was making ready to testify in court docket the following morning. Then, in accordance with court docket paperwork, he acquired an sudden telephone name.
The person on the opposite finish of the road launched himself as Shlomo Rechnitz, Aud later wrote in a declaration filed in Los Angeles County Superior Courtroom.
Over the course of greater than an hour, Rechnitz allegedly instructed Aud that “issues would get very nasty” for him and Jentz if Aud testified, the declaration mentioned. Rechnitz allegedly mentioned he would extend the case for years and produce to mild damaging data his personal investigators had collected about Jentz.
He additionally mentioned his personal investigators had realized that Jentz liked basketball, and mentioned she might obtain courtside Lakers tickets “proper subsequent to LeBron James” if she agreed to a aspect deal, Aud instructed the court docket.
“Mr. Rechnitz then mentioned ‘hear, I get it, we actually fucked up and I’m accepting full accountability, however I need the treatment or accountability to be on my phrases and reduce all these outrageous lawyer’s charges out of the image,’” Aud mentioned within the declaration. “He additionally mentioned ‘we fucked up and I settle for accountability, we have been severely understaffed.’”
Rechnitz didn’t instantly reply to those allegations in court docket, and the decide finally didn’t permit the jury to contemplate the telephone name to Aud in making its choice.
Attorneys from Lanzone Morgan, a Lengthy Seashore legislation agency that focuses on nursing house abuse, represented Jentz and Aud of their case in opposition to Nation Villa Wilshire. They mentioned that the decide accepted protection attorneys’ argument that the decision constituted “confidential settlement discussions” and didn’t permit the jury to listen to testimony about it. Gittler & Berg and Ekpebe Regulation Group, the legislation companies that represented Rechnitz and his corporations within the case, didn’t reply to CalMatters’ requests for remark. The jury’s $2.34 million verdict is now being appealed.
Lanzone Morgan additionally introduced the case in opposition to Alameda Healthcare & Wellness that ended within the $7.6 million judgment in August. The case is in a post-trial part wherein the decide is figuring out tips on how to apportion the legal responsibility amongst defendants.
Rockport Healthcare Providers, the executive providers firm for lots of the houses, can also be named in a number of the lawsuits, together with the one in opposition to Alameda Healthcare & Wellness. Rockport is owned by Steven Stroll, who has additionally served as Rechnitz’ accountant. Rockport has filed responses in court docket denying accountability for the allegations.
Elizabeth Kim, an lawyer with Lanzone Morgan, mentioned she needs to see the Division of Public Well being cease issuing licenses to Rechnitz and “different unhealthy actors.”
“It’s stunning to me that he’s in a position to get licenses after he just about runs a lot of his services into the bottom,” she mentioned. She referred to an Aug. 22 trial wherein Rechnitz acknowledged proudly owning a personal airplane and having lately offered a house in Los Angeles for $23 million.
Her shopper, Aud, whose nice aunt Jentz died in January 2025 a couple of months after the jury made its choice, wrote in his declaration to the court docket:
“I proceed to really feel uneasy concerning the calls and threats and I carry the concern of retaliation with me every day…I do dwell in concern that Mr. Rechnitz is now much more livid and that he’ll make good on his threats.”
CalMatters Knowledge Reporter Erica Yee contributed to this story.
In regards to the information
In addition to court docket data, the information on Rechnitz-owned services on this story relies on state and federal databases. See full methodology and obtain the information.
This text was initially printed on CalMatters and was republished beneath the Artistic Commons Attribution-NonCommercial-NoDerivatives license.
